The pharmacy benefits landscape is undergoing a period of transformation. As rising drug costs, increased regulatory pressure, and growing consumer expectations converge, many organizations are questioning whether traditional pharmacy benefit management (PBM) models can keep up with their evolving needs.

For decades, the industry relied on bundled PBM contracts that promised efficiency through scale. Large PBMs offered end-to-end services, managing benefits such as claims adjudication and rebate contracting under a single agreement. This one-size-fits-all, carved-in approach appealed to health plans, third-party administrators (TPAs), employers, and health systems looking for simplicity and consistency. However, today that model is being reconsidered.

Unpacking the Push for Change

A recent survey from Pharmacy Strategies Group (PSG) found that nearly one in three organizations are evaluating unbundled PBM models. Modular frameworks allow plan sponsors to separate individual services and choose specialized partners based on performance, value, and strategic fit. This shift brings greater control and agility, both of which are often limited in traditional PBM arrangements.

One of the main drivers behind this movement is transparency. In bundled contracts, the convenience of a single vendor can obscure how dollars flow through the system, making it difficult to identify inefficiencies or cost drivers.

“Transparency is important because we all want to understand where every dollar is being spent through the supply chain,” said John Zevzavadjian, President of Enterprise Solutions at RxSense. “Ultimately, it’s the consumer and the plan who benefit from the lowest net cost. But if there are inefficiencies, like spread pricing or markups, it’s the consumer and the payer who end up footing the bill.”

Technology is also a major factor. Many legacy PBM platforms were built to handle volume and scale, not real-time data or seamless integration. As organizations modernize the member experience and align pharmacy benefits with broader health strategies, outdated systems have become barriers to innovation.

The Future is Modular and It Is Already Here

In 2023, Blue Shield of California made headlines with its decision to unbundle PBM services and redesign its model. “The Blue Shield of California model has shown the industry what’s possible when you unbundle traditional PBM services,” said Zevzavadjian. “Payers now have the opportunity to mix and match partners to create a more flexible and tailored benefit experience that truly meets the needs of their members.”

This approach demonstrates how modular strategies can offer more choice, better value, and a more personalized benefit experience. For organizations looking to move beyond rigid contracts, unbundling opens the door to benefit designs that reflect their specific populations and goals. It supports smarter decision-making, improves financial performance, and allows for continuous adaptation.

How RxSense Powers the Shift to Modular PBM Models

Technology is often the missing link in a successful modular strategy. RxSense addresses this challenge with a fully integrated, end-to-end platform that provides real-time visibility across claims adjudication, plan design, and analytics. Built on a unified and modern code base, the platform eliminates the need for bolt-on solutions and ensures seamless data flow across all services.

“Real-time information is critical for health plans, large employers, and PBMs to make clinical, financial, or operational decisions,” said Zevzavadjian.

Unlike legacy PBMs, RxSense was designed for flexibility and connectivity. Its modular platform includes all the essential touchpoints, such as prior authorization and clinical program integration, using API-based architecture to enable near real-time data exchange with third-party vendors.

As more organizations seek flexibility and control, RxSense offers not just the technology but also the strategic support to make modular transformation achievable. Whether clients choose to unbundle all at once or take a phased approach, RxSense provides a cross-functional team of engineers, product leaders, and industry experts to guide implementation and long-term success.

From Standardization to Customization

The pharmacy benefits industry is shifting away from standardization and moving toward greater customization. An increasing number of health plans, employers, health systems, and TPAs are adopting models that offer vendor flexibility, deeper data insights, and the ability to adapt quickly to changing market demands. Modular PBM frameworks give organizations the tools to align benefit strategies with their unique goals while delivering improved outcomes for members.

While bundled models may continue to work for some, the broader direction is becoming clear. The future of pharmacy benefits is built on transparency, adaptability, and modern infrastructure. For those ready to leave the legacy playbook behind, modular strategies offer a more intelligent and responsive way forward.

To learn more about RxSense and the modular PBM model, visit www.rxsense.com.